A blog mostly about Politics..and the fresh new hell it brings with each day

Jun 24, 2011

Bank screwups continue to screw with homeowners in crisis.

From ProPublica more fuckery from those who are too big to fail..like Bank of America for instance:

Four years into the foreclosure crisis, banks say they've made major improvements in how they handle struggling homeowners. They've promised, for example, not to foreclose on homeowners who are being considered for mortgage modifications. But that's still happening.

Consider the cases of Laurie Pinkerton and Lisa Peterson. The two women, both Californians and Bank of America customers, had been assured by the bank that they wouldn't lose their homes before they'd been evaluated for a possible modification. Both had their homes sold last month.

Such cases are particularly senseless, because simply modifying the mortgage by reducing the monthly payment might be in the interest not only of the homeowner, but also of the investor who owns the mortgage. Both Pinkerton and Peterson said their homes were sold after foreclosure for far less than they're worth.
Regulators have done little to stop the practice, and the "problem appears to be getting worse," said Kevin Stein, associate director of the nonprofit California Reinvestment Coalition.

Last month, the coalition surveyed 55 foreclosure-avoidance counselors throughout the state. Collectively they serve thousands of borrowers every month. Almost all of the counselors, 94 percent, reported having worked with clients who'd lost their homes while under review for a modification. About half of the counselors reported this happened "often." This year's totals, which are due to be publicly released next week, are higher than those in the group's survey last year.

The article goes on to point out how little, if anything, the federal regulators are doing about this fucking mess. Wrongful foreclosures make life a living hell for the homeowner trying to keep their head above water and maintain possession of their home..as for the banks..nah..don't really harm those bastards one iota. Again from the Propublica writeup:

This past April, the federal banking regulators released "consent orders" with 14 of the largest banks requiring various improvements in their handling of mortgages and foreclosures. Prior to the orders, the regulators had not had clear rules on how the banks should handle modification applications. Among the new requirements, banks will now be forbidden from actually selling a home before a final decision is made on a modification. Also, if a homeowner is approved for a modification, the foreclosure process is supposed to stop. The new requirements will go into effect later this summer.(emphasis mine)

Why does everything take for-friggin-ever to be implemented, once the federal government figures out wtf is wrong and how the banks are playing the system?